GUSH: Immediate Uncertainty And Conflict Risks Dominate

Valkyrie Trading SocietyInvesting Group LeaderFollow5ShareSavePlay(9min)CommentsSummaryDirexion Daily S&P Oil & Gas Exp & Prod Bl 2X ETF (GUSH) offers leveraged exposure to the oil and gas exploration and production sector.The ETF carries heightened risk due to daily leverage reset when used over longer horizons. In general, leveraged ETFs are very risky, and should be considered with caution.In this case, there is a lot happening in oil markets in the immediate term with failed ceasefire talks and the announcement of a blockade against Iran in the Strait.While a successful blockade could mean safer and more transit volume, it also has led to transit abortions, heightened escalation risks and therefore possibility of supply crimp and speculative premia.In the medium term it's unpredictable and the blockade could lead to scenarios pointing in either direction, so we stay out, but we think uncertainty and speculation win out in favour of GUSH now.Looking for a helping hand in the market? Members of The Value Lab get exclusive ideas and guidance to navigate any climate. Learn More » imaginima/E+ via Getty Images The Direxion Daily S&P Oil & Gas Exp & Prod Bl 2X ETF (GUSH) is an E&P leveraged ETF that effectively plays movements in prices of oil on a leveraged basis. Everything is about theThis article was written byValkyrie Trading Society5.54K FollowersFollowThe Valkyrie Trading Society is a team of analysts sharing high conviction and obscure developed market ideas that are downside limited and likely to generate non-correlated and outsized returns in the context of the current economic environment and forces. They are long-only investors.They lead the investing group The Value Lab where they offer members a portfolio with real time updates, chat to answer questions 24/7, regular global market news reports, feedback on member stock ideas, new trades monthly, quarterly earnings write-ups, and daily macro opinions.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.